Home News This Is the Average 30-Something’s Mortgage. How Do You Compare?

This Is the Average 30-Something’s Mortgage. How Do You Compare?

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Mortgage debt has increased significantly over the past few years.


Key Point

  • According to a 2021 report from Experian, millennials have the second highest average mortgage debt of all generations.
  • However, if you buy a new home now, your mortgage can be significantly higher than average.

It’s not a big secret that house prices have skyrocketed in recent years. In fact, Zillow reports that median US home prices have risen 20.7% over the past year to a record high of $ 349,816.

As you can imagine, mortgage debt is also increasing. According to Experian, we recently examined the average American debt by type and generation of debt. This looks at what the average thirties owes to their mortgages.

Mortgage debt on average in their 30s

The Experian State of Credit 2021 Report We’ve categorized unpaid mortgage debt by generation, so let’s cover the number of millennials. Indeed, millennials (also known as generation Y) are not because they are generally considered to be generations born between 1981 and 1996 (ages 26-42). However People in their thirties. However, it is no exaggeration to say that millennials are likely to make up the majority of first-time homebuyers.

As of 2021, the average millennial with a mortgage has a mortgage debt of $ 255,527, according to an Experian report. This is a 10% increase over the 2020 average and a 16% increase over the 2019 level.Given the rise and surge in house prices Refinancing This certainly makes sense, as mortgage rates are low throughout 2021 (including refinancing cash outs).

The average Millennial generation has 11% more mortgage burdens and the second highest mortgage debt burden than the average US homeowner, just behind Generation X. This also makes sense. On average they were longer and therefore had more time to repay their loans. And while millennials are the earliest to buy, Generation X (ages 42-57) is at the peak of the “rise” and needs more space and amenities for their families.

Warnings to consider

There are some warnings that make these numbers lower than you might pay New mortgage today. For one, they include people in these age groups who have owned their homes for several years. This means that you bought it when the median home price was significantly lower than it is today. It also means that the homeowners in these groups had time to repay their principal balance (original borrowing amount).

For New arrival Borrowers, average mortgages are much larger. In fact, according to the Mortgage Banking Association, the average purchase loan as of late June 2022 was $ 413,500.

It’s not just your mortgage debt

Another important thing to mention Mortgage rates Home ownership for people who have skyrocketed and need to borrow money (most often in their thirties) is becoming more expensive. In fact, the average fixed rate mortgage rate for 30 years has almost doubled so far in 2022 alone. As a result, borrowers can expect monthly principal and interest payments that are approximately 42% higher than at the beginning of the year. Exactly the same Loan amount.

If you are interested in buying a home, our guide How much house can you afford It can help you start working on numbers and learn more about the process.And our Mortgage calculator It may also help you understand which interest rates and other details will help your situation.

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Mortgage rates are rising and moving fast. However, they are still relatively low by historical standards. Therefore, if you want to take advantage of rates before they get too high, you need to find a lender to help you get the highest possible rate.

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